NZDUSD – Can New Zealand Dollar Retain Momentum Vs USD?
Aayush Jindal
Key Highlights
The New Zealand dollar after a dip towards the 0.6890 level against the US Dollar found support.
The NZDUSD pair moved higher, and broke two bearish trend lines at 0.6920 and 0.7000 on the 4-hours chart.
Today, the New Zealand Visitor Arrivals figure for Feb 2017 (YoY) released by the Statistics New Zealand posted a rise of 1.8%.
Later today, the UK’s Consumer Price Index for Feb 2017 will be released by the National Statistics, which is forecasted to increase by 2.1% (YoY).
NZDUSD Technical Analysis
The New Zealand dollar declined towards 0.6900 against the US Dollar earlier this month against the US Dollar. The NZDUSD pair later formed support above 0.6900 and currently moving higher.During the upside move, the pair broke the 23.6% Fib retracement level of the last decline from the 0.7237 high to 0.6891 low. More importantly, there was a break above two bearish trend lines at 0.6920 and 0.70 on the 4-hours chart.Later, the pair managed to clear the 38.2% Fib retracement level of the last decline from the 0.7237 high to 0.6891 low. However, it is struggling to clear the 50% Fib level of the same wave. So, there is a chance of a dip in NZDUSD before it find buyers near 0.7000 for another upside move.
New Zealand Visitor Arrivals
Earlier today in New Zealand, the Visitor Arrivals figure for Feb 2017 (YoY) was released by the Statistics New Zealand. The market was expecting the number of visitors to New Zealand to increase by around 5% in Feb 2017, compared with Feb 2016.However, the result was disappointing, as the Visitor Arrivals increased 1.8% in Feb 2017. However, the count was still on the higher side, as the report added, mentioning that this “equalled the previous annual record set in January 2017. Migrant arrivals numbered 128,800 in the February 2017 year, a new annual record, while migrant departures were 57,500”.
Other Economic Releases to Watch Today
UK Retail Price Index Feb 2017 (YoY) – Forecast +2.9%, versus +2.6% previous.
UK Producer Price Index Feb 2017 (YoY) – Forecast +3.7%, versus +3.5% previous.
UK Consumer Price Index Feb 2017 (YoY) – Forecast +2.1%, versus +1.8% previous.
UK Core Consumer Price Index Feb 2017 (YoY) – Forecast +1.8%, versus +1.6% previous.
US Current Account Q4 2016 - Forecast $-128.2B, versus $-113.0B previous.
During the upside move, the pair broke the 23.6% Fib retracement level of the last decline from the 0.7237 high to 0.6891 low. More importantly, there was a break above two bearish trend lines at 0.6920 and 0.70 on the 4-hours chart.Later, the pair managed to clear the 38.2% Fib retracement level of the last decline from the 0.7237 high to 0.6891 low. However, it is struggling to clear the 50% Fib level of the same wave. So, there is a chance of a dip in NZDUSD before it find buyers near 0.7000 for another upside move.